Lenders Once Again Considering Construction Loans in South Florida

Oct 18, 2013 October 18, 2013

Although banks may once have been hesitant regarding construction lending, that is now changing. Case in point: In what amounts to one of the largest loans for a single construction project in the region, the Porsche Design condo project recently closed on a $214 million loan. The loan was originated by Wells Fargo for Dezer Development and will culminate in the construction of the Porsche Design Tower in Sunny Isles Beach.

Porsche Design condo tower will span 60 floors and include 132 ultra-luxury residences. The closing of the loan for this unique project indicates positive news overall for the recovery of the real estate market in the local area as well as real estate financing. Many commercial banks took leave of construction lending following the crash of the real estate market in the past few years. As housing as well as other segments of the market have begun to experience recovery, an increasing number of lenders have expressed a renewed, if somewhat conservative, interest in construction lending in South Florida.

Dezer Development, who has already completed six successful projects in the local area alone, is not the only example of a successful condo development lending project in the area. The Trump Group, recently obtained a construction loan for $160 million to complete an ultra-luxury condo project in Sunny Isles Beach, as well. Prior to the Dezer Development loan for the Porsche Design condo project, Mansions at Acqualina was one of the largest such loans South Florida had seen for some time.

As an increasing number of lenders are looking for developer applicants with proven track records and an increased equity, many condo projects are turning to an alternative financing model. Sometimes referred to as the Latin American model, this method requires larger deposits from buyers. This often involves at least 50 percent of the purchase price of the unit prior to closing. In the case of the Porsche Design project, more than $535 million in sales have already been secured for the project. Representing more than 66 percent of the proposed units, those sales exceeded the required benchmark required by Wells Fargo to secure the condo development loan.

                                                                 The Porsche Design Tower 

Contact Us
Founder, Condoblackbook.com & Owner/Broker, BlackBook Properties
(305) 697-7667
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Your Miami Condo Awaits

Recent Posts

Miami Condos with Shabbat Elevators
Real Estate News Miami Condos with Shabbat Elevators
Last updated June 11, 2021. Whether you refer to it as the Sabbath, Shabbat, Shabbos, or by any other term, your religious commitment to observing a holy day of rest should not prevent you from enjoying a luxury condo lifestyle in the subtropical paradise that is Miami.  For this reason, a number of condo communities provide the convenience of a Shabbat or Sabbath elevator, which is a specially programmed elevator that stops automatically on every floor during the Jewish Sabbath, from sundown on Friday evening until sundown on Saturday of every week.  This service is provided in order to accommodate the Jewish religious law that prohibits religious observers from pushing buttons or operating machinery during the Sabbath. While Miami today is known as a particularly Jewish-friendly metropolis, Jews were not even allowed to enter Miami Beach Hotels until the late 1940s. But by the 1950s they began to lay down roots in Miami Beach and to impact the economy, politics, and social flavor...
The Top 10 Tallest Buildings in Miami (You Can Live In)
Real Estate News The Top 10 Tallest Buildings in Miami (You Can Live In)
If you’ve been visiting Miami over the years, one thing you’ve probably noticed is the buildings keep getting taller, and the skyline keeps growing. Ever since the FAA relaxed its height restrictions more than six years ago, Miami’s skyline has continued to elevate itself with glimmering designs of glass and light. The tallest residential building in Miami as of this post is the apartment highrise Panorama Tower at 828 feet. But that won’t last for long. Every few months, a new condo tower is announced with ambitions of becoming one of Miami’s tallest buildings.  Call them #supertowers, #supertalls, or #skyscrapers, they’re definitely building the city’s skyline, reputation, and luxury living to new heights. So, who can claim the title of Miami’s tallest building you can call home? Check out our list below of the top 10 Tallest Condo Buildings in Miami – present and under construction – if you like to live above it all. Elysee Miami | Edgewater Height: 649 feetFloors: 57Developed...
Brickell Avenue Bridge Schedule, Traffic and Solutions -- All You Need To Know
Transportation Brickell Avenue Bridge Schedule, Traffic and Solutions -- All You Need To Know
Ever tried driving from Brickell to Downtown Miami for lunch? Most Miamians dread the thought of catching the dreaded Brickell Avenue bridge, a drawbridge that opens every hour or half-hour during non-curfew hours to allow river and traffic and boats to pass under.  * This article was updated on June 7, 2021 So what’s the problem? A big one! When the bridge opens, it ends up turning the city into a parking lot. With the last two building booms, there’s been a sudden surge in Downtown population since 2010 that has not stopped, and hence, denser traffic. And with Brickell now one of Miami’s hottest neighborhoods, serving as Miami’s vital financial hub, dense residential condo neighborhood and go-to place for nightlife, travel to and from Brickell and Downtown Miami is unavoidable.  This is why almost every second year, the FDOT faces requests to place restrictions on opening the bridge for maritime traffic during rush hour or extending curfew hours. However, listen to the marine...
June Events 2021: Father’s Day and More Summer Fun in Fort Lauderdale
Events June Events 2021: Father’s Day and More Summer Fun in Fort Lauderdale
Summer in Fort Lauderdale is the best time for a beach swim, day on the boat, brunch with friends, and to beat the summer heat. With over 20 June events in Fort Lauderdale to choose from, our curated list offers the best variety of things to do this month. Choose from a musical comedy, a scavenger hunt, concerts, a food and spirits festival on the beach, a dance showcase, tons of summer camps, and virtual programs you can enjoy right at home in the A/C! Also, since Father’s Day is June 20th, we’ve provided a list of things to do to honor Dad. Read on for some of the best picks for Father’s Day celebrations and events to make summer fun in Fort Lauderdale: Things to Do in Fort Lauderdale - June Events at a Glance Father’s Day 2021 Celebrations in Fort Lauderdale June 2021: Fort Lauderdale In-person Events Bonnet House Museum & Gardens Family Summer Specials: June 1 to September 5 Erotica - Exhibit: June 1 to July 2 Paranormal Boot Camp: June 4 Mel Schwartz Sleeps With Mae West...
Fort Lauderdale’s New and Pre-Construction Condo Update: May 2021
Real Estate News Fort Lauderdale’s New and Pre-Construction Condo Update: May 2021
The South Florida real estate market is experiencing an unprecedented buying boom fueled by the normalization of work-from-home practices, the idea of a better quality of life near the ocean and as scores of new businesses are relocating here. And developers across Fort Lauderdale and Miami are responding. As inventory has steadily dropped for the last two quarters, pre-construction projects are the next product to see a surge in demand and developers are responding by stepping up progress. This May, developers at Fort Lauderdale’s Harbors Edge reported a 70% sell-out in just 2 months after launching sales. Related Group’s Solemar is speeding through for a 2021 delivery. And, there’s speculation of a condo property changing hands. Read on for details on these Fort Lauderdale projects and more in our May 2021 condo pre-construction market roundup: Fort Lauderdale New Construction Projects that Broke Ground Solemar – Pompano Beach Developer Related Group broke ground on its luxury...
Miami’s New and Pre-Construction Condo Update: May 2021
Real Estate News Miami’s New and Pre-Construction Condo Update: May 2021
It’s no secret Miami’s real estate market is super hot and seeing a boom precipitated by the growing number of tech, finance, retail, and hospitality businesses that continue to choose to make South Florida home. As a nod to this surge in demand, we have condo developers either reviving old projects, announcing new ones, or revving up progress on current developments. This May, Miami’s pre-construction condo market saw three development projects make a comeback – Genting’s Resorts World Miami, Kar Properties’ One River Point, and Mast Capital’s 4000 Alton Road. Even the once-scrapped Auberge Residences by Related are rumored to be coming back.  The list of new construction developments now includes Aria Group’s 501 First in Downtown and Eichner’s Bay Harbour Islands luxury condos. Additionally, the Estates at Acqualina’s second tower topped off and Missoni Baia is just weeks from its top-off milestone. Read on for details on these and other updates in our May 2021 condo...